With its unique manufacturing strength, Sheffield City Region is commercially different to other parts of Yorkshire and Humberside, and because of this it will be interesting to see how the economy changes or affects the region over the coming years as Brexit remains such a determining process.
It is currently difficult to see a pattern developing as far as regional performance indicators are concerned. Some manufacturing businesses are performing very well at the moment and others are being adversely affected by the economy.
We can attribute much of this to Sterling's relative weakness against other trading currencies, which enables exporters to capitalise on better returns, while those who are primarily in the business of purchasing raw materials from overseas, might find that margins have reduced and it is not necessarily possible to pass those costs on to the customer.
Some businesses which trade overseas appear well prepared for the economic ups and downs brought about by Brexit and have hedged against currencies at an early stage, taking advantage of forward purchasing on energy etc so that there are few negative effects from the current uncertainty.
It became apparent during, and immediately after the General Election, that the changes we are witnessing have a destabilising effect on UK commerce with Sterling plunging, investment markets reducing and a general decline in confidence rippling through the business media.
We continue to look at the undercurrents which may affect the region's businesses as time passes. The UK's debt is still increasing, our balance of payments is not yet improving, oil prices remain unpredictable and we cannot see any consistent growth patterns.
This creates a volume of uncertainty with business owners, politicians and even economists unable to predict which way the economy is going to shift with the Brexit process – it could improve, or we could be pushed back into recession.
The simple fact is that it is just too early for those predictions, but the election result of a hung parliament does not inspire confidence from our European counterparts and this recent development may challenge the UK's Brexit outcomes even further.
Despite these uncertainties, Sheffield City Region has much in its favour – the region's globally renowned manufacturing skills set, highlighted through the advanced manufacturing hub on the Rotherham border, with recent announcements of Boeing and McClaren locating research centres there, places the region at the leading edge of manufacturing excellence. Further positive announcements may be imminent, I understand.
As a leading light in research and development and skills development, South Yorkshire is well placed if we do have to weather tougher economic times, the region is well and truly established on the international radar, with a level of collective manufacturing experience which is unmatched.
There are other positives – we will inherit a package of current EU laws which suit our future needs and we will be in a strong position to continue trading with EU partners even if we have trade levies to contend with.
